This year's tax filing season was delayed and last Friday, February 12, was the first day to file your tax return for 2020. How can you claim the extra $ 500 per qualifying dependent on your tax return if you had a child in 2020?
The amount of money you received with your stimulus check and the additional $500 per dependent were based on the tax return you filed for 2019. If this year you had a baby or adopted a child, the agency owes you money. How can you claim it?
If you had (or adopted) a child during 2020 you qualify for the Recovery Rebate Credit and must file a 2020 tax return to claim it, even if you don’t normally file.
According to the IRS website, eligible individuals can claim the Recovery Rebate Credit, which was authorized by the CARES Act, on their 2020 Form 1040 or 1040-SR.
Under the CARES Act and the Coronavirus Response and Relief Supplemental Appropriations Act, families were eligible to receive $ 500 for each dependent child who was 16 years old or younger in 2020.
However, the IRS based the payments on the data that was included in your 2019 tax returns, so it is impossible to have received the money for any child you had (or adopted) after filing your return last year.
So, what must you do?
If a new child came to your family in 2020 the IRS owes you $500 and what you should do, in order to receive the money, is provide their information on your 2020 tax return, which you can already file since February 12.
That way, by claiming the money through the Recovery Rebate Credit, they will give you the $ 500 per dependent that you are entitled to when you get your tax refund this year.